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FROM h1pNgDNd~...K PHONE N0. 3033254600 • Oct. 25 1997 09: 13PM P1 Hl:: MC:s?![IS, FILE ~ M-97-084 Page 2 <1$ pyrite overall with no other Sulfide minerals observed The entire area to the east of the proposed operation is a center of volcanic intrusive activity, the "BLOWOUT". This area is intensely altered and mineralized, with naturally occuring~ alteration products such as limonite, hematite, kaolinite, alunite, jarosite, etc. The entire Blowout area is yellow-ochre in color and contains a defines'. copper-molybdenum mineral deposit together with skarn-type base at;d precious-metal mineralization. The waste rock-alluvium contain:; a small amount of this type of material, together with an abundat.:e of the adjoining sedimentary arkose of the Permian Cutler formats .n. Ir. regards to your question about acid generating potential, if the mate:eial that is to be removed had a high AGP, there would be indications of such within and around the base of the allu~-ium, since this material has existed in this location at least 50 yea~a and possibly more than 100 years. The vegetation growing on and around this material shows no signs of being affected by low pH or heavy metals. This project is not one of mining massive sulfides ana creating waste ruck piles that at some future date, through oxidation, may create ~:cid conditions and liberate toxic metals. This is a project of remo._ng and using existing unconsolidated material, that has no indicate:>ns of being harmful to man or the environment. This materia~ will be used for fill or road base in other parts of the county, •:imilarly to the material in Skyrocket Creek, which has Continur:;.ly been used for the past many decades by the City of Ouray, Ouray Cc..nty, CDOT and private individuals . Exhibit - Site Description/Location Map The attached copy of a portion of the Ouray 7.5" Quadrangle, shows th~a location of the proposed site together with the t~~oograpriy to the east of this area. As shown, the intermittent drainage extends ,inly to the "bench" or flat area to the east. There are no basins or extensive slopes which would provide a larger source for potenti~.'. storm discharges. The area that influences this drainage is from :he above-mentioned bench, west to the flat where the proposee'. excavation is to be conducted. Within this drainage is the Memphis .like, along which prospecting and mining has been conducted since tl ~ late 1800'x. This is a possible source of some of the mineralised material that is described above. Exhibit " - Mining Plan You:• observations, both in review of the application and in the field rec;arding the potential of as unstable highwall being created by remov ng all of the material below the present drainage, is very well tak.~n. Based upon your suggestion, it is proposed to expand the permit Y~~undary to the east to include the drainage area, so that the addition;~l unconsolidated material can be removed and stabilized during ti.e mining process. It is groposed to remove the unconsol.dated material down to bedrock, and allow the natural side slopes t+ remain as cliff faces. It is difficult to predict the